Why every adviser should have account minimums

Times are changing — quickly. The rise of the robo-adviser with little to no account minimum has every financial adviser taking a hard look at how they are issuing fees — my partner, Ron Carson, included. And for every adviser out there thinking about getting rid of their account minimum to compete with these online one-size-fits-all business models, I would say: Know your worth.

Recently, I invited four financial advisers to join me on stage at a top adviser meeting in Omaha, Neb., to discuss the topic of account minimums. Two advisers currently had account minimums implemented and two did not. It became very clear early in the discussion there were vast differences in the way they ran their businesses and the types of relationships they had with their clients.


What is your break-even point? If you even have to think about it, you don’t really know. Advisers taking on less-than-than-ideal clients often end up expanding their service offering “just this once” or because “it really won’t take much time to service them.” And that’s true. Until it does.


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